When is an order not an order?

The biggest myth at this time is that there are fields of cars sitting around waiting for a good owner, like some stray dog at a compound. Yes there are a few manufacturer's with some stock, but most now have washed through the oversupply of last year. Reduced production, even factory closures such as Honda, mean that increasingly the popular car needs to be factory ordered.

As a consumer we are used to the idea of placing an order by leaving a deposit and we believe that from that point the good or service is secured and at that price. The car business can be a little different.

A dealer is given an allocation of vehicles they can order and this is then broken down by month or quarter. Once they have used up all their "slots" for that period they have to wait until the next period before the order is accepted by the factory. For the twitterers amongst you its a bit like the 100API limits.

So what? Well manufacturers price increases are usually price protected, but protected at the point that the order is accepted by the factory.

So, if you are in the market for a new car at this time I have 2 pieces of advice:

1. Order now, there are price rises scheduled by the big manufacturers (yes I know more!) for July

2. When ordering make sure the dealer has allocation and that you will be price protected (including the scrappage scheme which states you must take delivery of your new car within 4 months of ordering)